Stash bill offers no amnesty; Pay 60% to avoid 10 yrs jail

Finance minister Arun Jaitley on Friday introduced the stringent new black money bill in the Lok Sabha which proposes 10 year rigorous imprisonment and 120 per cent tax on those who stash illicit funds in foreign shores.

However, it proposes to provide a short compliance window to those who want to come clean on black money by paying tax of 30 per cent and an equal amount of penalty. Such persons will not be prosecuted under the stringent provisions of the new Act.

“It is to be noted that this is not an amnesty scheme as no immunity from penalty is being offered. It is merely an opportunity for persons to come clean and become compliant before the stringent provisions of the new act come into force,” said finance ministry.

Also to protect persons holding foreign accounts with “minor balances” which may not have been reported out of oversight or ignorance, bill provides that failure to report bank accounts with a maxi- mum balance of `5 lakh at any time during the year, will not entail penalty or prosecution.

The Bill provides for separate taxation of any undisclosed income in relation to foreign income and assets.

After the Bill is passed, such income will not be taxed under the I-T Act but under the stringent provisions of the proposed new legislation.